(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
EXHIBIT NUMBER | ||||||||
99 |
REGIS CORPORATION | |||||||||||
Dated: August 26, 2021 | By: | /s/ Amanda P. Rusin | |||||||||
Amanda P. Rusin | |||||||||||
Executive Vice President, General Counsel and Corporate Secretary |
Exhibit No. 99 | |||||
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Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Consolidated revenue | $ | 99,130 | $ | 60,143 | $ | 415,113 | $ | 669,729 | ||||||||||||||||||
System-wide revenue (1) | $ | 293,981 | $ | 119,417 | $ | 1,086,024 | $ | 1,367,567 | ||||||||||||||||||
System-wide same-store sales comps | 4.2 | % | (20.2) | % | (25.8) | % | (4.4) | % | ||||||||||||||||||
Two-year system-wide same-store sales comps | (21.0) | % | N/A | (28.3) | % | N/A | ||||||||||||||||||||
Operating loss | $ | (27,265) | $ | (68,567) | $ | (104,152) | $ | (145,338) | ||||||||||||||||||
Loss from continuing operations | $ | (34,339) | $ | (73,654) | $ | (113,331) | $ | (172,194) | ||||||||||||||||||
Diluted loss per share from continuing operations | $ | (0.95) | $ | (2.05) | $ | (3.15) | $ | (4.79) | ||||||||||||||||||
EBITDA (2) | $ | (26,677) | $ | (37,478) | $ | (69,210) | $ | (108,947) | ||||||||||||||||||
as a percent of revenue | (26.9) | % | (62.3) | % | (16.7) | % | (16.3) | % | ||||||||||||||||||
As adjusted (2) | ||||||||||||||||||||||||||
Net loss, as adjusted | $ | (26,500) | $ | (36,211) | $ | (105,672) | $ | (21,714) | ||||||||||||||||||
Diluted loss per share, as adjusted | $ | (0.74) | $ | (1.01) | $ | (2.94) | $ | (0.60) | ||||||||||||||||||
EBITDA, as adjusted (2) | $ | (23,246) | $ | (33,845) | $ | (79,225) | $ | 19,512 | ||||||||||||||||||
as a percent of revenue | (23.5) | % | (56.3) | % | (19.1) | % | 2.9 | % |
Three Months Ended June 30, | Increase (Decrease) | Twelve Months Ended June 30, | Increase (Decrease) | |||||||||||||||||||||||||||||||||||
(Dollars in millions) (1) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||
Product | $ | 15.6 | $ | 7.2 | $ | 8.4 | $ | 56.7 | $ | 50.4 | $ | 6.3 | ||||||||||||||||||||||||||
Product sold to TBG locations | — | — | — | — | 2.0 | (2.0) | ||||||||||||||||||||||||||||||||
Product | $ | 15.6 | $ | 7.2 | $ | 8.4 | $ | 56.7 | $ | 52.4 | $ | 4.3 | ||||||||||||||||||||||||||
Royalties and fees | 26.7 | 7.3 | 19.4 | 88.1 | 73.4 | 14.7 | ||||||||||||||||||||||||||||||||
Franchise rental income | 31.5 | 30.3 | 1.2 | 127.4 | 127.2 | 0.2 | ||||||||||||||||||||||||||||||||
Total franchised salons revenue | $ | 73.8 | $ | 44.8 | $ | 29.0 | $ | 272.1 | $ | 253.0 | $ | 19.1 | ||||||||||||||||||||||||||
Franchise same-store sales comps (2) | 4.4 | % | (20.4) | % | (24.5) | % | (4.4) | % | ||||||||||||||||||||||||||||||
Franchise two-year same-store sales comps (2) | (20.2) | % | N/A | (27.2) | % | N/A | ||||||||||||||||||||||||||||||||
EBITDA, as Adjusted | $ | 11.3 | $ | 1.4 | $ | 9.9 | $ | 41.0 | $ | 37.9 | $ | 3.1 | ||||||||||||||||||||||||||
as a percent of revenue | 15.3 | % | 3.1 | % | 15.1 | % | 15.0 | % | ||||||||||||||||||||||||||||||
as a percent of adjusted revenue (3) | 32.1 | % | 9.7 | % | 33.4 | % | 34.3 | % | ||||||||||||||||||||||||||||||
Total Franchise Salons | 5,563 | 5,209 | 354 | |||||||||||||||||||||||||||||||||||
as a percent of total Franchise and Company-owned salons | 95.3 | % | 76.1 | % |
Three Months Ended June 30, | Increase (Decrease) | Twelve Months Ended June 30, | Increase (Decrease) | |||||||||||||||||||||||||||||||||||
(Dollars in millions) (1) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Total Revenue | $ | 25.3 | $ | 15.3 | $ | 10.0 | $ | 143.0 | $ | 416.7 | $ | (273.7) | ||||||||||||||||||||||||||
Company-owned same-store sales comps | (7.0) | % | (18.9) | % | (33.4) | % | (4.4) | % | ||||||||||||||||||||||||||||||
Company-owned two-year same-store sales comps | (30.4) | % | N/A | (35.2) | % | N/A | ||||||||||||||||||||||||||||||||
EBITDA, as Adjusted | $ | (13.3) | $ | (21.6) | $ | 8.3 | $ | (47.5) | $ | (6.6) | $ | (40.9) | ||||||||||||||||||||||||||
as a percent of revenue | (52.6) | % | (141.2) | % | (33.2) | % | (1.6) | % | ||||||||||||||||||||||||||||||
Total Company-owned Salons | 276 | 1,632 | (1,356) | |||||||||||||||||||||||||||||||||||
as a percent of total Franchise and Company-owned salons | 4.7 | % | 23.9 | % |
June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 19,191 | $ | 113,667 | ||||||||||
Receivables, net | 27,372 | 31,030 | ||||||||||||
Inventories | 22,993 | 62,597 | ||||||||||||
Other current assets | 17,103 | 19,138 | ||||||||||||
Total current assets | 86,659 | 226,432 | ||||||||||||
Property and equipment, net | 23,113 | 57,176 | ||||||||||||
Goodwill | 229,582 | 227,457 | ||||||||||||
Other intangibles, net | 3,761 | 4,579 | ||||||||||||
Right of use asset | 611,880 | 786,216 | ||||||||||||
Other assets | 41,388 | 40,934 | ||||||||||||
Total assets | $ | 996,383 | $ | 1,342,794 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 27,157 | $ | 50,918 | ||||||||||
Accrued expenses | 54,857 | 48,825 | ||||||||||||
Short-term lease liability | 116,471 | 137,271 | ||||||||||||
Total current liabilities | 198,485 | 237,014 | ||||||||||||
Long-term debt, net | 186,911 | 177,500 | ||||||||||||
Long-term lease liability | 518,866 | 680,454 | ||||||||||||
Long-term financing liabilities | — | 27,981 | ||||||||||||
Other non-current liabilities | 75,075 | 94,142 | ||||||||||||
Total liabilities | 979,337 | 1,217,091 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Shareholders' equity: | ||||||||||||||
Common stock, $0.05 par value; issued and outstanding, 35,795,844 and 35,625,716 common shares at June 30, 2021 and 2020, respectively | 1,790 | 1,781 | ||||||||||||
Additional paid-in capital | 25,102 | 22,011 | ||||||||||||
Accumulated other comprehensive income | 9,543 | 7,449 | ||||||||||||
Retained (deficit) earnings | (19,389) | 94,462 | ||||||||||||
Total shareholders' equity | 17,046 | 125,703 | ||||||||||||
Total liabilities and shareholders' equity | $ | 996,383 | $ | 1,342,794 |
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Service | $ | 18,080 | $ | 9,405 | $ | 108,120 | $ | 331,538 | ||||||||||||||||||
Product | 22,879 | 13,070 | 91,544 | 137,586 | ||||||||||||||||||||||
Royalties and fees | 26,664 | 7,340 | 88,057 | 73,402 | ||||||||||||||||||||||
Franchise rental income | 31,507 | 30,328 | 127,392 | 127,203 | ||||||||||||||||||||||
Total revenue | 99,130 | 60,143 | 415,113 | 669,729 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Cost of service | 12,703 | 9,615 | 79,144 | 222,279 | ||||||||||||||||||||||
Cost of product | 24,327 | 9,441 | 79,167 | 84,698 | ||||||||||||||||||||||
Site operating expenses | 14,507 | 8,611 | 51,463 | 71,543 | ||||||||||||||||||||||
General and administrative | 28,014 | 25,766 | 105,433 | 130,953 | ||||||||||||||||||||||
Rent | 6,802 | 12,958 | 40,930 | 76,382 | ||||||||||||||||||||||
Franchise rent expense | 31,507 | 30,328 | 127,392 | 127,203 | ||||||||||||||||||||||
Depreciation and amortization | 5,330 | 9,466 | 22,713 | 36,952 | ||||||||||||||||||||||
Long-lived asset impairment | 3,205 | 22,560 | 13,023 | 22,560 | ||||||||||||||||||||||
TBG mall restructuring | — | (35) | — | 2,333 | ||||||||||||||||||||||
Goodwill impairment | — | — | — | 40,164 | ||||||||||||||||||||||
Total operating expenses | 126,395 | 128,710 | 519,265 | 815,067 | ||||||||||||||||||||||
Operating loss | (27,265) | (68,567) | (104,152) | (145,338) | ||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||
Interest expense | (3,187) | (2,907) | (13,813) | (7,522) | ||||||||||||||||||||||
Loss from sale of salon assets to franchisees | (8,233) | (1,181) | (16,696) | (27,306) | ||||||||||||||||||||||
Interest income and other, net | 286 | 165 | 15,902 | 3,353 | ||||||||||||||||||||||
Loss from continuing operations before income taxes | (38,399) | (72,490) | (118,759) | (176,813) | ||||||||||||||||||||||
Income tax benefit (expense) | 4,060 | (1,164) | 5,428 | 4,619 | ||||||||||||||||||||||
Loss from continuing operations | (34,339) | (73,654) | (113,331) | (172,194) | ||||||||||||||||||||||
Income from discontinued operations, net of income taxes | — | 79 | — | 832 | ||||||||||||||||||||||
Net loss | $ | (34,339) | $ | (73,575) | $ | (113,331) | $ | (171,362) | ||||||||||||||||||
Net loss per share: | ||||||||||||||||||||||||||
Basic and diluted: | ||||||||||||||||||||||||||
Loss from continuing operations | $ | (0.95) | $ | (2.05) | $ | (3.15) | $ | (4.79) | ||||||||||||||||||
Income from discontinued operations | — | — | — | 0.02 | ||||||||||||||||||||||
Net loss per share:, basic and diluted (1) | $ | (0.95) | $ | (2.05) | $ | (3.15) | $ | (4.77) | ||||||||||||||||||
Weighted average common and common equivalent shares outstanding: | ||||||||||||||||||||||||||
Basic and diluted | 36,038 | 35,871 | 35,956 | 35,936 |
Twelve Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | (113,331) | $ | (171,362) | ||||||||||
Adjustments to reconcile net loss used in operating activities | ||||||||||||||
Non-cash adjustments related to discontinued operations | — | (1,098) | ||||||||||||
Depreciation and amortization | 17,871 | 33,101 | ||||||||||||
Salon asset impairment | — | 3,851 | ||||||||||||
Long-lived asset impairment | 13,023 | 22,560 | ||||||||||||
Deferred income taxes | (3,388) | (3,934) | ||||||||||||
Inventory reserve | 12,068 | — | ||||||||||||
Gain from disposal of distribution center assets | (14,997) | — | ||||||||||||
Gain from sale of company headquarters, net | — | (2,513) | ||||||||||||
Loss from sale of salon assets to franchisees, net | 16,696 | 27,306 | ||||||||||||
Goodwill impairment | — | 40,164 | ||||||||||||
Stock-based compensation | 3,254 | 3,275 | ||||||||||||
Amortization of debt discount and financing costs | 1,839 | 398 | ||||||||||||
Other non-cash items affecting earnings | (351) | (539) | ||||||||||||
Changes in operating assets and liabilities (1): | ||||||||||||||
Receivables | (279) | (3,902) | ||||||||||||
Inventories | 17,879 | (2,255) | ||||||||||||
Income tax receivable | 1,295 | (1,804) | ||||||||||||
Other current assets | 1,658 | 2,827 | ||||||||||||
Other assets | (2,896) | (10,094) | ||||||||||||
Accounts payable | (21,669) | 4,588 | ||||||||||||
Accrued expenses | 5,296 | (27,622) | ||||||||||||
Net lease liabilities | (19,248) | 276 | ||||||||||||
Other non-current liabilities | (14,603) | 368 | ||||||||||||
Net cash used in operating activities: | (99,883) | (86,409) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital expenditures | (11,475) | (37,494) | ||||||||||||
Proceeds from sale of company headquarters | — | 8,996 | ||||||||||||
Proceeds from sale of assets to franchisees | 8,437 | 91,616 | ||||||||||||
Costs associated with sale of assets to franchisees | (261) | (2,089) | ||||||||||||
Proceeds from company-owned life insurance policies | 1,200 | — | ||||||||||||
Net cash (used in) provided by investing activities: | (2,099) | 61,029 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Borrowings on revolving credit facility | 10,000 | 213,000 | ||||||||||||
Repayments of revolving credit facility | (589) | (125,500) | ||||||||||||
Repurchase of common stock | — | (28,246) | ||||||||||||
Minority interest buyout | (562) | — | ||||||||||||
Distribution center lease payments | (724) | (769) | ||||||||||||
Taxes paid for shares withheld | (348) | (2,320) | ||||||||||||
Net cash provided by financing activities: | 7,777 | 56,165 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 477 | (284) | ||||||||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (93,728) | 30,501 | ||||||||||||
Cash, cash equivalents and restricted cash: | ||||||||||||||
Beginning of year | 122,880 | 92,379 | ||||||||||||
End of year | $ | 29,152 | $ | 122,880 |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Service | Retail | Total | Service | Retail | Total | |||||||||||||||||||||||||||||||||
SmartStyle | 2.4 | % | (14.0) | % | (1.7) | % | (17.9) | % | (17.1) | % | (17.7) | % | ||||||||||||||||||||||||||
Supercuts | 12.4 | (10.1) | 10.9 | (23.1) | (12.6) | (22.5) | ||||||||||||||||||||||||||||||||
Portfolio Brands | (0.5) | (14.7) | (2.2) | (16.2) | (13.3) | (15.9) | ||||||||||||||||||||||||||||||||
Total | 6.8 | % | (13.2) | % | 4.2 | % | (20.9) | % | (14.6) | % | (20.2) | % |
Twelve Months Ended | ||||||||||||||||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||
Service | Retail | Total | Service | Retail | Total | |||||||||||||||||||||||||||||||||
SmartStyle | (26.1) | % | (28.5) | % | (26.7) | % | (3.6) | % | (10.1) | % | (5.5) | % | ||||||||||||||||||||||||||
Supercuts | (25.9) | (23.5) | (25.8) | (3.8) | (10.7) | (4.2) | ||||||||||||||||||||||||||||||||
Portfolio Brands | (25.3) | (20.6) | (24.8) | (3.3) | (7.2) | (3.7) | ||||||||||||||||||||||||||||||||
Total | (25.8) | % | (25.5) | % | (25.8) | % | (3.6) | % | (9.4) | % | (4.4) | % |
June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
FRANCHISE SALONS: | ||||||||||||||
SmartStyle/Cost Cutters in Walmart Stores | 1,666 | 1,317 | ||||||||||||
Supercuts | 2,386 | 2,508 | ||||||||||||
Portfolio Brands (1) | 1,357 | 1,217 | ||||||||||||
Total North American Salons | 5,409 | 5,042 | ||||||||||||
Total International Salons (2) | 154 | 167 | ||||||||||||
Total Franchise Salons | 5,563 | 5,209 | ||||||||||||
as a percent of total Franchise and Company-owned salons | 95.3 | % | 76.1 | % | ||||||||||
COMPANY-OWNED SALONS: | ||||||||||||||
SmartStyle/Cost Cutters in Walmart Stores | 91 | 751 | ||||||||||||
Supercuts | 35 | 210 | ||||||||||||
Portfolio Brands (1) | 107 | 505 | ||||||||||||
Mall-based (3) | 43 | 166 | ||||||||||||
Total Company-owned Salons | 276 | 1,632 | ||||||||||||
as a percent of total Franchise and Company-owned salons | 4.7 | % | 23.9 | % | ||||||||||
OWNERSHIP INTEREST LOCATIONS: | ||||||||||||||
Equity ownership interest locations | 78 | 82 | ||||||||||||
Grand Total, System-wide | 5,917 | 6,923 |
Reconciliation of U.S. GAAP operating loss and net loss to equivalent non-GAAP measures | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||||||||
U.S. GAAP financial line item | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
U.S. GAAP revenue | $ | 99,130 | $ | 60,143 | $ | 415,113 | $ | 669,729 | ||||||||||||||||||||||||
U.S. GAAP operating loss | $ | (27,265) | $ | (68,567) | $ | (104,152) | $ | (145,338) | ||||||||||||||||||||||||
Non-GAAP operating expense adjustments (1) | ||||||||||||||||||||||||||||||||
Employee litigation reserve | Site operating expenses | — | — | — | (600) | |||||||||||||||||||||||||||
Marketing impairment | Site operating expenses | — | 1,653 | — | 1,653 | |||||||||||||||||||||||||||
CEO transition | General and administrative | — | — | (694) | — | |||||||||||||||||||||||||||
Professional fees | General and administrative | 3,603 | 460 | 7,026 | 681 | |||||||||||||||||||||||||||
Severance | General and administrative | 1,606 | 1,534 | 4,545 | 9,588 | |||||||||||||||||||||||||||
Corporate office transition | Rent | — | 100 | — | 1,019 | |||||||||||||||||||||||||||
Lease liability benefit | Rent | (8,727) | — | (20,022) | — | |||||||||||||||||||||||||||
Lease termination fees | Rent | 7,020 | — | 13,544 | — | |||||||||||||||||||||||||||
Real estate fees | Rent | 49 | — | 583 | — | |||||||||||||||||||||||||||
Asset retirement obligation | Depreciation and amortization | 1,280 | — | 4,726 | — | |||||||||||||||||||||||||||
Long-lived asset impairment | Long-lived asset impairment | 3,205 | 22,560 | 13,023 | 22,560 | |||||||||||||||||||||||||||
TBG restructuring | TBG restructuring | — | (35) | — | 2,333 | |||||||||||||||||||||||||||
Goodwill impairment | Goodwill impairment | — | — | — | 40,164 | |||||||||||||||||||||||||||
Total non-GAAP operating expense adjustments | 8,036 | 26,272 | 22,731 | 77,398 | ||||||||||||||||||||||||||||
Non-GAAP operating loss (1) | $ | (19,229) | $ | (42,295) | $ | (81,421) | $ | (67,940) | ||||||||||||||||||||||||
U.S. GAAP net loss | $ | (34,339) | $ | (73,575) | $ | (113,331) | $ | (171,362) | ||||||||||||||||||||||||
Non-GAAP net loss adjustments: | ||||||||||||||||||||||||||||||||
Non-GAAP operating expense adjustments | 8,036 | 26,272 | 22,731 | 77,398 | ||||||||||||||||||||||||||||
Corporate office transition | Interest income and other, net | — | — | — | (2,513) | |||||||||||||||||||||||||||
Gain on distribution centers | Interest income and other, net | (120) | — | (14,997) | — | |||||||||||||||||||||||||||
Goodwill derecognition | Interest income and other, net | — | — | — | 76,966 | |||||||||||||||||||||||||||
Income tax impact on Non-GAAP adjustments (2) | Income taxes | (77) | 11,171 | (75) | (1,371) | |||||||||||||||||||||||||||
TBG discontinued operations, net of income tax | Loss from discontinued operations, net of tax | — | (79) | — | (832) | |||||||||||||||||||||||||||
Total non-GAAP net loss adjustments | 7,839 | 37,364 | 7,659 | 149,648 | ||||||||||||||||||||||||||||
Non-GAAP net loss | $ | (26,500) | $ | (36,211) | $ | (105,672) | $ | (21,714) |
Reconciliation of U.S. GAAP net loss per diluted share to non-GAAP net loss per diluted share | ||||||||||||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
U.S. GAAP net loss per diluted share | $ | (0.953) | $ | (2.051) | $ | (3.152) | $ | (4.769) | ||||||||||||||||||
Employee litigation reserve (1) | — | — | — | (0.013) | ||||||||||||||||||||||
Marketing impairment (1) | — | 0.036 | — | 0.036 | ||||||||||||||||||||||
CEO transition (1) | — | — | (0.019) | — | ||||||||||||||||||||||
Professional fees (1) | 0.100 | 0.010 | 0.192 | 0.015 | ||||||||||||||||||||||
Severance (1) | 0.044 | 0.034 | 0.125 | 0.208 | ||||||||||||||||||||||
Corporate office transition (1) | — | — | — | (0.033) | ||||||||||||||||||||||
Lease liability benefit (1) | (0.240) | — | (0.550) | — | ||||||||||||||||||||||
Lease termination fees (1) | 0.193 | — | 0.373 | — | ||||||||||||||||||||||
Real estate fees (1) | 0.001 | — | 0.016 | — | ||||||||||||||||||||||
Asset retirement obligation (1) | 0.035 | — | 0.130 | — | ||||||||||||||||||||||
Long-lived asset impairment (1) | 0.088 | 0.492 | 0.359 | 0.490 | ||||||||||||||||||||||
TBG restructuring (1) | — | (0.001) | — | 0.050 | ||||||||||||||||||||||
Goodwill impairment (1) | — | — | — | 0.872 | ||||||||||||||||||||||
Goodwill derecognition (1) | — | — | — | 1.671 | ||||||||||||||||||||||
Gain on distribution centers (1) | (0.003) | — | (0.413) | — | ||||||||||||||||||||||
TBG discontinued operations, net of tax | — | (0.002) | — | (0.023) | ||||||||||||||||||||||
CARES Act | — | — | — | 0.408 | ||||||||||||||||||||||
Tax asset valuation | — | 0.473 | — | 0.484 | ||||||||||||||||||||||
Impact of change in weighted average shares (3) | — | — | — | — | ||||||||||||||||||||||
Non-GAAP net loss per diluted share (2) (3) | $ | (0.735) | $ | (1.009) | $ | (2.939) | $ | (0.604) | ||||||||||||||||||
U.S. GAAP Weighted average share - basic and diluted | 36,038 | 35,871 | 35,956 | 35,936 | ||||||||||||||||||||||
Non-GAAP Weighted average shares - diluted (2) | 36,038 | 35,871 | 35,956 | 35,936 |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated (1) | |||||||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 11,917 | $ | (19,292) | $ | (26,964) | $ | (34,339) | ||||||||||||||||||
Interest expense, as reported | — | — | 3,187 | 3,187 | ||||||||||||||||||||||
Income taxes, as reported | — | — | (4,060) | (4,060) | ||||||||||||||||||||||
Depreciation and amortization, as reported | 153 | 3,651 | 1,526 | 5,330 | ||||||||||||||||||||||
Long-lived asset impairment, as reported | — | 3,205 | — | 3,205 | ||||||||||||||||||||||
EBITDA (as defined above) | $ | 12,070 | $ | (12,436) | $ | (26,311) | $ | (26,677) | ||||||||||||||||||
Professional fees | — | — | 3,603 | 3,603 | ||||||||||||||||||||||
Severance | — | — | 1,606 | 1,606 | ||||||||||||||||||||||
Lease liability benefit | (716) | (8,011) | — | (8,727) | ||||||||||||||||||||||
Lease termination fees | (103) | 7,123 | — | 7,020 | ||||||||||||||||||||||
Real estate fees | 21 | 28 | — | 49 | ||||||||||||||||||||||
Gain on distribution centers | — | — | (120) | (120) | ||||||||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 11,272 | $ | (13,296) | $ | (21,222) | $ | (23,246) |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated (1) | |||||||||||||||||||||||
Consolidated reported net loss, as reported (U.S. GAAP) | $ | (531) | $ | (49,763) | $ | (23,281) | $ | (73,575) | ||||||||||||||||||
Interest expense, as reported | — | — | 2,907 | 2,907 | ||||||||||||||||||||||
Income taxes, as reported | — | — | 1,164 | 1,164 | ||||||||||||||||||||||
Depreciation and amortization, as reported | 260 | 7,269 | 1,937 | 9,466 | ||||||||||||||||||||||
Long-lived asset impairment, as reported | 1,712 | 20,848 | — | 22,560 | ||||||||||||||||||||||
EBITDA (as defined above) | $ | 1,441 | $ | (21,646) | $ | (17,273) | $ | (37,478) | ||||||||||||||||||
Professional fees | — | — | 460 | 460 | ||||||||||||||||||||||
Severance | — | — | 1,534 | 1,534 | ||||||||||||||||||||||
Corporate office transition | — | — | 100 | 100 | ||||||||||||||||||||||
TBG restructuring | (35) | — | — | (35) | ||||||||||||||||||||||
Marketing impairment | — | — | 1,653 | 1,653 | ||||||||||||||||||||||
TBG discontinued operations, net of tax | — | — | (79) | (79) | ||||||||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 1,406 | $ | (21,646) | $ | (13,605) | $ | (33,845) |
Twelve Months Ended June 30, 2021 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated (1) | |||||||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 40,652 | $ | (70,032) | $ | (83,951) | $ | (113,331) | ||||||||||||||||||
Interest expense, as reported | — | — | 13,813 | 13,813 | ||||||||||||||||||||||
Income taxes, as reported | — | — | (5,428) | (5,428) | ||||||||||||||||||||||
Depreciation and amortization, as reported | 1,049 | 14,730 | 6,934 | 22,713 | ||||||||||||||||||||||
Long-lived asset impairment, as reported | 726 | 12,297 | — | 13,023 | ||||||||||||||||||||||
EBITDA (as defined above) | $ | 42,427 | $ | (43,005) | $ | (68,632) | $ | (69,210) | ||||||||||||||||||
CEO transition | — | — | (694) | (694) | ||||||||||||||||||||||
Professional fees | — | — | 7,026 | 7,026 | ||||||||||||||||||||||
Severance | — | — | 4,545 | 4,545 | ||||||||||||||||||||||
Lease liability benefit | (1,322) | (18,700) | — | (20,022) | ||||||||||||||||||||||
Lease termination fees | (103) | 13,647 | — | 13,544 | ||||||||||||||||||||||
Real estate fees | 22 | 561 | — | 583 | ||||||||||||||||||||||
Gain on distribution centers | — | — | (14,997) | (14,997) | ||||||||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 41,024 | $ | (47,497) | $ | (72,752) | $ | (79,225) |
Twelve Months Ended June 30, 2020 | ||||||||||||||||||||||||||
Franchise | Company-owned | Corporate | Consolidated (1) | |||||||||||||||||||||||
Consolidated reported net income (loss), as reported (U.S. GAAP) | $ | 32,886 | $ | (96,128) | $ | (108,120) | $ | (171,362) | ||||||||||||||||||
Interest expense, as reported | — | — | 7,522 | 7,522 | ||||||||||||||||||||||
Income taxes, as reported | — | — | (4,619) | (4,619) | ||||||||||||||||||||||
Depreciation and amortization, as reported | 922 | 29,113 | 6,917 | 36,952 | ||||||||||||||||||||||
Long-lived asset impairment, as reported | 1,712 | 20,848 | — | 22,560 | ||||||||||||||||||||||
EBITDA (as defined above) | $ | 35,520 | $ | (46,167) | $ | (98,300) | $ | (108,947) | ||||||||||||||||||
Employee litigation reserve | — | (600) | — | (600) | ||||||||||||||||||||||
Marketing impairment | — | — | 1,653 | 1,653 | ||||||||||||||||||||||
Professional fees | — | — | 681 | 681 | ||||||||||||||||||||||
Severance | — | — | 9,588 | 9,588 | ||||||||||||||||||||||
Corporate office transition | — | — | (1,494) | (1,494) | ||||||||||||||||||||||
TBG restructuring | 2,333 | — | — | 2,333 | ||||||||||||||||||||||
Goodwill impairment, as reported | — | 40,164 | — | 40,164 | ||||||||||||||||||||||
Goodwill derecognition | — | — | 76,966 | 76,966 | ||||||||||||||||||||||
TBG discontinued operations, net of tax | — | — | (832) | (832) | ||||||||||||||||||||||
Adjusted EBITDA, non-GAAP financial measure | $ | 37,853 | $ | (6,603) | $ | (11,738) | $ | 19,512 |
Three Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
As Adjusted EBITDA | $ | 11,272 | $ | 1,406 | ||||||||||
U.S. GAAP revenue | 73,813 | 44,802 | ||||||||||||
As Adjusted EBITDA as a % of U.S. GAAP revenue | 15.3 | % | 3.1 | % | ||||||||||
Non-margin revenue adjustments: | ||||||||||||||
Franchise rental income | (31,507) | (30,328) | ||||||||||||
Ad fund revenue | (7,218) | — | ||||||||||||
Adjusted revenue | $ | 35,088 | $ | 14,474 | ||||||||||
As Adjusted EBITDA as a percent of adjusted revenue (1) | 32.1 | % | 9.7 | % |
Twelve Months Ended June 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
As Adjusted EBITDA | $ | 41,024 | $ | 37,853 | ||||||||||
U.S. GAAP revenue | 272,148 | 253,026 | ||||||||||||
As Adjusted EBITDA as a % of U.S. GAAP revenue | 15.1 | % | 15.0 | % | ||||||||||
Non-margin revenue adjustments: | ||||||||||||||
Franchise rental income | (127,392) | (127,203) | ||||||||||||
Ad fund revenue | (22,023) | (13,341) | ||||||||||||
TBG product sales | — | (2,010) | ||||||||||||
Adjusted revenue | $ | 122,733 | $ | 110,472 | ||||||||||
As Adjusted EBITDA as a percent of adjusted revenue (1) | 33.4 | % | 34.3 | % |
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